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Religare Morning Digest

September 3, 2015

Nifty Outlook
After Tuesdays sharp decline, equity markets made a positive start on Wednesday but failed to
uphold for long and concluded the day in red. Initially, mood was positive in response to news that
the government has accepted the recommendations of A P Shah-led panel on minimum alternate
tax (MAT) that it is not applicable to foreign institutional investors (FIIs). Some recovery in rupee in
early trades was also supporting the bounce. However, underperformance from the rate sensitive
pack was hurting the sentiments from the early trade which later intensified and pulled the index in
negative territory.
Undoubtedly, its tough phase for traders due to the excessive volatility and we are not
expecting any major respite in near future. Hence, its important for them to maintain pro-active
approach in trade management and that can be done only in highly liquid fundamentally strong
counters. Needless to say, we have reached near to the major support zone of 7600 mark again and
its sustainability holds the key ahead.

Nifty

VWAP

Max Call

Max Put

7920

8500

7800

News

Religare Super Ideas

DLF jumped 3.6% on BSE after the Singapore government's sovereign wealth fund GIC
announced its decision to invest about Rs 1990 crore in two upcoming real estate development
projects of a wholly-owned subsidiary of DLF.
Bajaj Auto has posted 2% rise in its total sales during August with the company selling 3.42 lakh
units versus 3.37 lakh units in the same month of last year. Motorcycle sales rose by 2% to 2.9
lakh units against 2.84 lakh units. Commercial vehicles sales were down by 2% to 51,529 units.

Scrip

Buy/Sell

CMP

Initiation
Range

SL

Target

DABUR

Buy

280.15

278 - 280

270

300

CAIRN

Sell Fut.

141.5

143 - 145

150

128

SAIL will spend Rs 7,500 crore on modernisation and expansion programme in the current fiscal
ending March 2016.

Instrument

B/S

Lot

INITIATION
PRICE

NIFTY 7300PE

25

NIFTY
2*7200PE

50

TOTAL

FII & DII activity (Rs. in Cr.)

Sectors to watch

Derivative Ideas :

Trade Stats

Sector Name

Outlook

Category

Amt

MTD

YTD

68

TELECOMM

STABLE

FII

-675

17209

46189

52

BANKS

POSITIVE

DII

682

10533

65672

PHARMA

STABLE

36

SL

50

TARGET

10

Disclaimer: http://www.religareonline.com/research/Disclaimer/Disclaimer_RSL.html

*FII & DII data of 1st September 2015

NO OF CONTRACTS

TURNOVER
IN CR

IDXFUTS

929147

22694

IDXOPT

6406634

137769

STKFUTS

825396

21075

Religare Morning Digest


September 3, 2015

Religare Super Ideas

Derivative Ideas
Cairn India Limited (CAIRN)

Dabur India Limited (DABUR)

Vix is likely to settle to 20% in the short term, some


put writing seen at 7200 strike. We expect the
premium of 7200 strikes to drop.

Strategy:- Buy nifty 7300pe @ 68 and sell 2* 7200 pe


@ 52, each spread at 36, sloss 50, target 10.

Dabur outperformed broader markets today, rallied


over 5%. This up move over shadowed past three
sessions decline. This rise was backed by better than
average volume. All this suggest move up side move
in near term.

It is in down trend and has been trading in lower low


lower high formation from a long time.
Recently, buying was witnessed and it retraced
almost 61.8% as per the Fibonacci theory. This is
generally observed that stock price resume its broader
trend after retracing to these levels. Considering all, we
believe down side move in near term.

Investment PickKOTAKBANK
Scrip

CMP

Recommendation Price

Target

Duration

KOTAKBANK

608.70

705.10

900

9-12 month

KOTAKBANK

Kotak Mahindra Bank acquired ING Vysya Bank in an all-stock deal. This amalgamation has created the fourth largest private sector bank in the country. Through this
move the bank is able to increase its branch network, fee income and asset profile which would improve profitability for the merged entity going forward.

The banks Q1 June 2015 results were hit adversely by significant provisions on merger of ING Vysya Bank. However, it believes that the merger benefits will flow in due
course from both, revenue synergies as well as cost efficiencies, resulting from significant geographical and product complementarities, fuller customer segment coverage,
economies of scale and improved productivity and efficiency.

We expect the bank to deliver much higher growth than the industry in FY16-FY17, driven by market share gains in the retail and SME loan segments post-merger.

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Religare Morning Digest


September 3, 2015

Market Snapshot
Top Gainers - Nifty

Sectoral Indices Performance


Index

Closing

% Change

% MTD

% YTD

CNX Auto

7,639

-1.38%

-3.9%

-7.8%

CNX Bank

16,253

-1.68%

-5.2%

-13.3%

CNX Energy

7,442

-0.93%

-2.7%

-13.9%

CNX Finance

6,653

-1.92%

-4.9%

-10.9%

CNX FMCG

19,856

0.47%

-1.3%

-1.3%

CNX IT

11,605

1.12%

0.0%

3.5%

CNX Media

2,244

-0.76%

-3.6%

-6.0%

CNX Metal

1,746

-1.43%

-4.8%

-34.4%

12,840

-1.28%

-2.8%

17.3%

2,962

-3.16%

-7.5%

-30.6%

157

0.71%

-2.6%

-22.6%

CNX Pharma
CNX PSU Bank
CNX Realty

Stock
Tech Mahindra
Idea Cellular

CMP (INR)
536

TCS
UltraTech Cem.
ACC

154.5

% Chg
4.6%
3.4%

% MTD
4.1%
-0.9%

% YTD
-17.3%
0.5%

2591.8

2.1%

1.1%

1.3%

2886.1
1356.35

1.8%
1.8%

-0.1%
1.6%

10.1%
-3.1%

Top Losers - Nifty


Stock
BHEL
Punjab Natl.Bank
ONGC
M&M
St Bk of India

CMP (INR)

% Chg

% MTD

% YTD

206.5
129.55
225.2
1134.55
230.55

-5.2%
-3.9%
-3.8%
-3.6%
-3.6%

-8.8%
-10.6%
-5.9%
-7.1%
-6.8%

-22.1%
-40.9%
-34.0%
-8.1%
-26.1%

Delivery Spurt stocks

Bulk Deals - NSE


Security Name

Client Name Buy/Sell

Quantity

Price Value (in Cr.)

Stock Name

Day's del. Vol. Del. Vol. spike Price change

Mercator Limited

ALBULLA INVESTMENT FUND LTD

BUY

8293585

22.48

18.64

Mercator

9081192

2801%

-5.7%

Mercator Limited

LOTUS GLOBAL INVESTMENTS LIMITED

SELL

8293585

22.48

18.64

D B Corp

362547.00

1157%

-1.3%

Housing Development and SHAASTRA SECURITIES TRADING PRIVATE SELL

2299657

58.8

13.52

Shrenuj & Co.

89414.00

863%

-4.9%

Housing Development and SHAASTRA SECURITIES TRADING PRIVATE BUY

2299657

58.77

13.52

GE Shipping Co

705307.00

782%

-1.6%

Jagran Prakashan

1183219.00

603%

-1.9%

Mandhana Indus

131188.00

558%

-1.9%

32777.00

473%

-5.2%

Vakrangee

1876856.00

380%

-6.7%

Indiabulls Hous.

2840880.00

346%

-3.6%

Kansai Nerolac

223660.00

340%

-4.8%

Dishman Pharma &Chem N.K. SECURITIES

SELL

460945 251.59

11.60

Dishman Pharma &Chem N.K. SECURITIES

BUY

460945 251.49

11.59

Plastiblends India Limite

KOLSITE CORPORATION LLP

BUY

204500 326.25

6.67

Plastiblends India Limite

KABRA EXTRUSIONTECHNIK LTD

SELL

204500 326.24

6.67

Disclaimer: http://www.religareonline.com/research/Disclaimer/Disclaimer_RSL.html

Visagar Polytex

Religare Morning Digest


September 3, 2015

Current Portfolio and Performance Summary as on 2nd September15

Sector

Entry Date

Weight

Construction

3/2/2015

9.6%

1,818

1,528

Consumer Goods

4/10/2015

11.2%

849

806

Pharma

6/26/2015

7.6%

719

729

Financial Services

7/21/2015

5.6%

683

702

IT

7/21/2015

5.0%

983

949

PI Industries

Fertilisers & Pesticides

7/23/2015

5.7%

659

713

Dabur India

Consumer Goods

8/5/2015

7.5%

296

280

Auto

8/13/2015

6.9%

2,660

2,329

MCX

Financial Services

8/21/2015

4.7%

1,067

965

Cash

Cash

Stock
Larsen & Toubro
Asian Paints
Aurobindo Pharma
Repco Home Finance LimHCL Technologies

Hero MotoCorp

Total Total

Disclaimer: http://www.religareonline.com/research/Disclaimer/Disclaimer_RSL.html

Reco price (`)

CMP (`)

36.1%
100%

Religare Morning Digest


September 3, 2015

Historical Performance as on 2nd September15

Performance Matrix

1-Month

3-Month

6-Month

1-Year

Since Inception

Religare Alpha

-5.49%

1.96%

-4.16%

0.00%

14.67%

Nifty

-9.56%

-6.31%

-13.66%

0.00%

-2.12%

Outperformance

4.07%

8.27%

9.50%

0.00%

16.79%

Disclaimer: http://www.religareonline.com/research/Disclaimer/Disclaimer_RSL.html

Religare Morning Digest


September 3, 2015

Research Product Basket

For every client, the advisor must allocate a specific proportion of funds for trading and investing depending on the risk taking ability and willingness of the client and
their investment goals.

The below mentioned product basket tries to address the way to deal with the trading portfolio (cash/derivative) for optimum effectiveness of research calls.

It is recommended to divide your trading funds for various types of calls and not invest the entire amount for 1 or 2 calls only.

For 1L margin*

For cash market trading


Call / Product

Call Frequency

No. of calls

Avg open call duration

% funds allocated

Total

Per Call

Intraday Calls

Intraday

2-3

< 1 day

25%

25,000

8,000

Live / RMD Calls


Master Pick
Religare Alpha
Cash
Intraday Calls
Live / RMD Calls
Master Pick

Daily

3-4

3 - 4 days

30%

30,000

4,000

Weekly

1 month

15%

15,000

5,000

Opportunity

NA

2 - 3 months

20%

20,000

As per weightage

NA
10%
10,000
These calls are flashed live on Ms Lync and ODIN with the purpose of squaring off positions on the same day. As a policy, we restrict our intraday cash
market calls to less than 4 calls a day. Hence, funds should be allocated accordingly to have provision to trade in all calls.
2 super ideas are flashed in RMD daily with a view of 3-4 days. Additionally as per market opportunity, we flash live calls during the day (including
BTST calls). 3-4 such calls are made on a daily basis which might be open for 3-4 days. Funds should be allocated keeping in mind that there will be 7
-8 such open calls daily.
This is our weekly recommendation shortlisted on the basis of techno-funda analysis. 15% of funds is recommended to be allocated for Master Pick
considering that there will be 3 open calls. The average open duration for this call will be 1 month.

Religare Alpha

This is a portfolio of 8-10 stocks which are held with a view of 2-3 months. It is recommended to allocate 20% of funds for building this portfolio which
will provide stability to the overall trading portfolio.

Cash

10% surplus cash in the portfolio should be kept for the purposes of allocating it to opportunities as and when they arrive .

For 1L margin*

For derivative market trading


Call / Product
Derivative Ideas
Live calls
Cash
Derivative Ideas
Live Calls
Cash

Call Frequency

No. of calls

Avg open call duration

% funds allocated

Total

Per Call

Daily

1-2

1 - 3 days

40%

40,000

40,000

Intraday / Daily

1-2

3 - 4 days

50%

50,000

50,000

10%

10,000

NA

1 derivative idea is shared in RMD daily. It can be a plain vanilla F&O buy/sell call or an option strategy. Funds should be allocated assuming 2 such
calls will be open at any time. These calls are open for 3-4 days on an average.
These calls are flashed on MS Lync and ODIN during live market hours. These calls can be intraday or with a view of 2-3 days. Funds should be
allocated considering 2 such calls will be open at any time. 3/4 times, these calls will be on Nifty / Bank Nifty only.
It is recommended to hold 10% cash to capitalize on any opportunity that may arise in markets.

Disclaimer: http://www.religareonline.com/research/Disclaimer/Disclaimer_RSL.html

Religare Morning Digest


September 3, 2015

Team Members
Ajay Kumar Srivastava ajaykumar.s@religare.com
Ajit Mishra

ajit.mishra@religare.com

Ashish Bansal

ashish.bansal@religare.com

Gaurav Sharma

gaurav.sh@religare.com

Swati Saxena

swati.saxena@religare.com

Manoj M Vayalar

manoj.vayalar@religare.com

Munjal Mehta

munjal.mehta@religare.com

Disclaimer: http://www.religareonline.com/research/Disclaimer/Disclaimer_RSL.html

Religare Morning Digest


September 3, 2015
Before you use this research report , please ensure to go through the disclosure inter-alia as required under Securities and Exchange Board of India (Research Analysts) Regulations,
2014 and Research Disclaimer at the following link : http://old.religareonline.com/research/Disclaimer/Disclaimer_RSL.html
Specific analyst(s) specific disclosure(s) inter-alia as required under Securities and Exchange Board of India (Research Analysts) Regulations, 2014 is/are as under:
Statements on ownership and material conflicts of interest , compensation Research Analyst (RA)
[Please note that only in case of multiple RAs, if in the event answers differ inter-se between the RAs, then RA specific answer with respect to questions under F (a) to F(j) below , are
given separately]

S. No.

Statement

Answer
Yes

I/we or any of my/our relative has any financial interest in the subject company? [If answer is yes, nature of Interest is given below this table]
I/we or any of my/our relatives, have actual/beneficial ownership of one per cent. or more securities of the subject company, at the end of the month
immediately preceding the date of publication of the research report or date of the public appearance?

No
No
No

I/we or any of my/our relative, has any other material conflict of interest at the time of publication of the research report or at the time of public
appearance?
I/we have received any compensation from the subject company in the past twelve months?

No

I/we have managed or co-managed public offering of securities for the subject company in the past twelve months?

No

I/we have received any compensation for brokerage services from the subject company in the past twelve months?

No

I/we have received any compensation for products or services other than brokerage services from the subject company in the past twelve months?

No

I/we have received any compensation or other benefits from the subject company or third party in connection with the research report?

No

I/we have served as an officer, director or employee of the subject company?


I/we have been engaged in market making activity for the subject company?

No
No

No

Nature of Interest ( if answer to F (a) above is Yes :


Name(s) with Signature(s) of RA(s).
[Please note that only in case of multiple RAs and if the answers differ inter-se between the RAs, then RA specific answer with respect to questions under F (a) to F(j) above , are given
below]

SS..No.

Name(s) of RA.

Signtures of
RA

Serial Question of question which the signing RA


needs to make a separate declaration / answer

Yes

No.

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